Is Traditional Real Estate Investing Dead? This New Trend May Be The Start Of A New Era

Image Source: Arrived Homes

Investing trends have changed drastically over the past few years with the rise in blockchain bringing cryptocurrencies and NFTs to the main stage, meme stocks disrupting the market and the ability to legally invest in cannabis.

Many investment trends are short lived because they aren’t based on anything that’s driving real value, but others are marking the start of a new era. One such trend that’s emerging is fractionalized real estate, and it’s without a doubt just the beginning of a new era in real estate investing.

Real Estate for the Retail Investor

Real estate may be among the greatest wealth builders of all time, but it certainly hasn’t been an easy asset class to invest in. Until very recently, investing in real estate required a significant amount of capital, access to financing, and a lot of time and energy.

Fractional real estate is changing all of that. Virtually anyone can buy shares of income-producing real estate in about five minutes and can even do so with as little as $100.

This type of real estate investing has been around since the JOBS Act was first passed in 2012, but it was a bit slow to take off. Options were quite limited, minimum investments were high and most offerings were only available to accredited investors.

However, the fractional real estate market finally started to pick up some steam in 2021. The number of new offerings on existing platforms increased, providing investors with a greater range of options and new platforms emerged to start providing the same level of deal access to non-accredited investors.

One of the platforms paving the way is Arrived Homes. The company acquires rental properties in some of the fastest growing markets throughout the United States and allows investors to buy shares of these properties with as little as $100.

The platform currently has six live offerings and has been adding new properties every two to four weeks. Investors can choose which properties to buy shares in, then simply collect passive income while they wait for the properties to appreciate in value. 

View current offerings on Arrived Homes

Why Fractional Real Estate is Here to Stay

With all of the different investing trends that have emerged over the past couple of years, there’s one common theme that’s not going anywhere; the rise of the retail investor.

Retail investors are taking a growing share of the markets across almost all asset classes and are demanding access to the same investment opportunities that institutional investors have been benefiting from for generations.

Real estate developers and investment companies that were once limited to raising capital through banks and private equity funds can now turn to retail investors to fund their projects, and an increasing number of these companeis are doing just that. 

Want access to fractional real estate investments? Benzinga’s Alternative Investment Screener allows you to browse current offerings based on investor status, the amount you have available to invest, projected returns and even specific property types. Browse current offerings